Full speed ahead to recovery: SMC profit jumps 15-fold in Q1 | Bilyonaryo Business News
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Full speed ahead to recovery: SMC profit jumps 15-fold in Q1

Sustaining its upward momentum in the second half of 2020, conglomerate San Miguel Corp. posted a net income of P17.2 billion in the first quarter or 15 times the P1.1 billion profit recorded in the same period last year as sales of most businesses rebounded.

Subsidiaries Petron Corp., San Miguel Foods. Ginebra San Miguel Inc. and SMC Global Power bounced back stronger during the period in a sign of recovery from the pandemic.

“We’re encouraged by these improvements, as they reflect that our businesses are definitely headed towards full recovery. Despite the challenges ahead, we’re determined to sustain our performance and continue taking on meaningful projects and investments that will help our economy recover,” said SMC president and COO Ramon S. Ang.

Consolidated revenues were down 6% to P201.2 billion as volumes of Petron, San Miguel Brewery and SMC Infrastructure were still affected by prevailing restrictions. This was, however, still an improvement from the decline in the 1st quarter and full year 2020 at 15% and 29%, respectively.

With lower raw material costs and effective cost saving efforts, consolidated operating income soared 175 percent to P32.2 billion.

San Miguel Food and Beverage reported a 66 percent jump in earnings to P9.7 billion as revenues rose 11 percent to P76.4 billion.

San Miguel Brewery Inc. grew its net income by 45 percent to P5.5 billion on the back of effective cost management efforts.

Ginebra San Miguel Inc. had a rock solid performance as net profit jumped 120 percent to P1 billion on strong consumption, wider distribution, better selling prices, and lower alcohol cost.

SMC Global Power Holdings Corp., meanwhile, reported a net income of P7.8 billion o revenues of P27.4 billion.

Petron Corp., meanwhile, swung to a P1.7 billion profit from a net loss of P4.9 billion as sales

volumes continued to improve.

SMC Infrastructure, on the other hand, saw its operating income decline by 33 percent to P1.2 billion on lower revenues and higher operating expenses.

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